Increasing research & development for innovation is driving the specialty yeast market

Yeasts are microorganisms belonging to the fungi kingdom; they are widely used in the production of food & beverages as well as biofuel as a source of nutrients. Specialty yeast products originate in natural food yeast, which is used for enhancing the nutritional and taste contributing properties of food products. Specialty yeast is used for applications such as food, beverages, feed, pharmaceuticals, chemicals, cosmetics, and personal care products.

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The global market for specialty yeasts is projected to reach USD 4.0 billion by 2025, at a CAGR of 7.2%

Specialty yeasts are mainly used in the food industry for their organoleptic properties; they are used for manufacturing specific fermented foods such as dairy and bakery products, fermented meat, vegetable products, and vinegar. Research & development is playing a key role in this market, as it is one of the strategic pillars of specialty yeast manufacturing companies for new product development, modifications in the existing products, developing new applications, and various technologies used to make the product more enhanced. Companies are innovating new products to maintain their presence in the market and cater to consumer demand for more qualitative products. This factor is helping the market to grow in the forecast period.

The food segment is dominant owing to its increasing adoption in bakery and functional food products

Specialty yeast is used in applications such as food, beverage, feed, pharmaceutical, personal care, and cosmetics. In the food, beverage, pharmaceutical, and feed industries, specialty yeast is used to increase the nutritive value of the end-product, which offers health benefits to consumers. The food segment in the specialty yeast market consists of bakery & confectionery and functional foods, which utilizes specialty yeast to increase the nutritive value, taste, and flavor of food products. The market from bakery products and functional foods is dominating the food segment and is projected to be the fastest-growing market during the forecast period.

Europe is the largest market whereas Asia Pacific is projected to grow at the highest CAGR, during the forecast period

The largest markets for specialty yeast are European markets, which represent a large share of industry participants and consumers. They also have stringent regulations for synthetic additives, which is helping them to dominate the market. Europe is a very mature market with high uses of yeast in various applications, such as food, feed, and pharmaceuticals.

Increase in consumption of various baked products using natural ingredients, such as bread, cakes, rolls, pastries, and alcoholic beverages, has propelled the market in the forecast period. However, some of the major flavor trends witnessed in the Asia Pacific region are helping Asia Pacific to attain the highest growth rate. This includes increasing awareness about health & wellness and the growing demand for products that are natural, pure, and fresh, due to which fermented flavors such as kimchi and kombucha are gaining popularity. China accounts for the largest market share in this region, as specialty yeasts are used in various applications such as the production of wine, sauces, and dairy products.

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The players in the specialty yeast market are directing their efforts toward expansions & investments. Through this strategy, companies are more focused on increasing their production capacity. They are also investing in research & development to expand themselves on various applications. Specialty yeast is also getting popular as animal feed. For instance, ADM Animal nutrition (US) has launched a new yeast-based product, Versatile, for pets, to promote yeast as an alternative protein source for animals. This has helped the company to extend its product portfolios with feed yeast products through new product developments and launches.